Operations

Auntie Anne’s steps out of the mall

The pretzel chain is opening food trucks and locations in urban areas in a bid to evolve.
Jonathan Maze

Auntie Anne’s wasn’t really meant for the mall. It just sort of happened that way after the chain was founded 30 years ago.

“When Anne [Beiler] started the company, she never intended for malls to be the primary location,” Brand President Heather Neary said in an interview Thursday. “But it’s worked for 30 years.”

But now, with mall traffic struggling and the chain largely built out in the nation’s busiest shopping centers, Anne’s is looking elsewhere.

The company recently opened a co-branded unit in New York City’s Bronx area, along with its fellow Focus Brands company Cinnabon.

The location “is exceeding our expectations,” Neary says.

It’s an early location as part of what she says is an intentional push by the brand to open more street-side locations in urban environments.

Auntie Anne’s does have some stand-alone locations, including one in New York City’s Times Square.

“We’re looking for new places to take the brand,” Neary says.

Auntie Anne’s was first opened in 1988 in a Pennsylvania farmers market and ultimately began opening in malls and other nontraditional locations. Those malls have been good for the chain, which relies on the built-in traffic of people looking for a snack.

The chain finished 2017 with more than 1,300 locations, up 1.1% from the year before, according to Technomic Top 500 data.

Neary says that the company has locations in about half of the nation’s malls. “There’s about 1,200 malls,” she says. “We’re in 650 of them, give or take. We’ve always gone after the better malls.

“But it’s time to look at what’s next for the brand.”

In addition to the street-side locations, the chain is opening food trucks. It has about 12 of those and is looking to add another dozen.

Anne’s is also looking at tourist locations, such as Gatlinburg, Tenn., and Branson, Mo.

The key for any location is the foot traffic that the chain found so well in malls over the years. But the challenge for some of these locations, especially those in urban areas, is rent. High-traffic real estate usually comes along with high rent.

“That’s absolutely part of the consideration set,” she says.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners